> Porn operators are, as a whole, rather shady themselves and present their own set of risks to a payment provider. A lot of those chargebacks in #1 are actually valid chargebacks.
...is there a logical reason for this?
...is there a logical reason for this?
It's a viscous cycle, really. We treat porn producers like dirt only only dirty people want to take the job which further reinforces our stereotypes about said people. Plus the barrier to entry is real low and brand loyalty is almost nonexistent so it's a prime industry for fly-by-night operators.
For my friend who was hit by this, it really sucked, because telco billing chargebacks in those days took 3 months or more, so it looked like he had hockey-stick month-over-month growth... until suddenly he didn't, because most of the "growth" was fraudulent charges intended to get him shut down.